Impact of Basel III liquidity requirements on the payments industry

| Point of View

The rising volume of large value payments has exposed the need to have resilient liquidity management systems. Banks offering payment and transaction services need consistent management of intraday liquidity risks that arise because of their outstanding payment obligations. This paper explores the impact of the Basel III liquidity requirements on the liquidity management capabilities of banks providing payments and cash management services, and analyses the need to develop liquidity management solutions that can provide a centralised view of the bank’s liquidity balances.